Revenue collection target of Rs 1,952 billion seems unachievable: MCCI

Unprecedented tax targets set by the government in the federal budget could be the main cause of fiscal imbalances at the end of financial year. Government has continued to rely on unachievable economic figures and has emphasised on tax collection without setting growth targets in any sector, Shahid Naseem Khokhar, President Multan Chamber of Commerce and Industry (MCCI) said on Sunday.
In the current scenario, there should be a free and fair taxation policy in order to raise revenues, broadening and simplifying the tax collection procedures is the need of the day and the government should develop an environment of trust to build the confidence of taxpayers, Khokhar emphasised.
Expressing concern over the revenue collection target of Rs 1,952 billion set for the upcoming financial year 2011-12, the Multan Chamber of Commerce and Industry (MCCI) observed that the government might not able to achieve it. MCCI President, in a press statement, said that revenue collection target of Rs 1952 billion in current economic scenario seems unachievable and the government might remain far behind the target, he added. He emphasised on broadening the tax base of the country through systematic and realistic way, as the country has a potential of increasing tax-to-GDP ratio. He emphasised on winning the public confidence by improving governance, eradicating corruption and pursuing equitable tax policies.
The MCCI president feared that harassment by tax departments would be a hurdle in achieving this huge revenue target and tax machinery would be under extreme pressure in this regard. Tax collectors should collect taxes without any harassment. The government must develop a conducive environment to collect taxes and also to encourage non-taxpayers to come into the tax net, he added.
He said that the direct tax collections envisaged in the budget 2010-11 could not be realised. He was of the view that in case of lagging behind the expected tax target, government would be facing big problems because of further increase in the fiscal deficit, which has already widened and pulling country into debt trap.